1. www.mediafuturist.com
twitter.com/gleonhard
10 new Generatives:
Selling Music in a connected World

2. www.mediafuturist.com
What I do: www.twitter.com/gleonhard
Photo Credits: as indicated, or via iStockphoto

3. None of these ideas will work if...
There is no real merit, value and
uniqueness in what you do
You don’t have an audience (attention)
You are not willing, or not able to talk
to your fans, all the time
You really want to learn how to swim
but are still afraid to get wet

4. Merit is
where it all
starts.

5. Money
Conversion
Attention
Merit, Quality & Uniqueness

6. Making money is a
consequence of
Attention
(not the other way round)

7. Note: there is no one-fits-all recipe!
Not all Music is the same
Not all Money is the same
Not all Users are the same
Not all Cultures are the same

8. So what is ‘Monetization’?
1.A real-cash transaction of any
kind (often pre-consumption)
2.Revenue Sharing (usually
post-consumption)
3.Non-cash remunerations
4.Upstream payments
(Freemium)

9. Getting Paid for Creation *Hat tip to Shelly Palmer
3rd party
pays
You
pay You
I pay pay
3rd party
I pay
I pay
pays
3rd party pays
*constantly changing variations

10. Expect extreme fragmentation of Music Commerce Models

11. 2 important distinctions
1) Monetize collectively
Public Broadcasting Blanket
Performance & Webcasting Licenses
Revenue
Bundles Flat Rates
Sharing
2) Monetize individually
Music Sales Sync Licenses Branding
Many others (coming up!)

12. Many other New Generatives
Community Premium Services Permission
High Definition & Premium Versions
Mobile Device Applications & Software
Monetize collectively
Live-Concerts, Web-Casts, Virtual Shows...
Flat Rates, Bundles, Revenue-Sharing

13. What does ‘selling music’ really mean?
• iTunes sales
• CD sales
• Songs used in Ads or Games
• Youtube clicks?
• Spotify plays?
• Last.fm plays?
• Facebook or Mog ‘Like’?
• Bookmarked song?
• Forwarded link via email?
How will you measure success?

14. The Music 2.0 Model Business Models
Business Models
Business Models
Artist /
Creator

15. Music Commerce 2.0:
don’t try to sell what is
Ubiquitous - sell what is
Scarce
Source: Chris Brogan

16. What is scarce? What could you sell?
Offers that save time, and
Users’ time and attention award / keep attention
Curation and Selection Offers that save the users from
Filtering, Context the overload and filter-failures
Offers that generate trust and
Trust create personal connections
Offers based on unique,
Meaningful experiences personal, real experiences
Offers that provide for real
Meaningful relationships conversations and connections

17. Offers that save time, and
award / keep attention
Offers that save the users
from the overload and filter-
failures
Offers that generate trust and
create personal connections
Offers based on a unique,
personal, real experience
Offers that provide for real
conversation and connections

18. Sell via Twitter....?!
Source: Digital Media Wire

19. How Dell does it Source: Paid Content.org

20. The search for New Generatives
®+©=$
?=$

21. =$
Networked Model
Broadcast Model

22. When the browser becomes the iPod...

23. The Toll-Booth Challenge: how to
monetize ACCESS rather than copies
Source: istockphoto

24. From Chris Anderson’s “Free” Presentation
Source: Wired.com

25. Free gets you to
a place where
you can get
paid.
Quote by Fred Wilson, Union Square Ventures www.avc.com

26. “Free” only
makes sense if Source: Slideshare
you can
actually
convert

27. Charging for saving time...

28. Free to Paid: Examples

29. The future is no longer binary....
Source: Chris Anderson / Wired
It’s fuzzy.

30. It’s not either... or!
versus

31. Hybrid Models in many variations

32. Music Pricing Futures
Price of legal copy’
Number of legal, known, engaged Users
Premium Buyers (i.e. converted users)
100
75
50
25
0
Was Will be

33. The Mobile & Social
‘Consumption’ of
Music is the
#1 Growth
Opportunity

34. Music
Products
as
Software
on Mobile
Devices
Source: Gigaom

35. Mobile & Social: the key opportunities

36. The next format shift: Music as... Software!

37. Examples

38. New packages... new $$

39. My top 10 for ‘Monetizing Music’
from music products: downloads, CDs etc
from music services: streaming, bundles,
revenue sharing, flat-rates
from broadcasting & public performances
from licensing: synchronization / B2B deals
from branding & sponsorships
from live performances, concerts, events
from virtual concerts etc
from virtual goods (licenses)
from new kinds of ‘stuff’ (merchandising etc)
from direct-to-fan services

40. Direct-to-the-fan offerings

41. Mike Masnik (Techdirt) nailed it, last year

42. The process
1. Attract the right people by
offering relevant
Content
2. Get and hold their
Attention, build Trust
3. Think Followers not Users
4. Offer added values to
convert followers into $$

43. The Vortex Principle
Upstream Downstream
Source: STLPartners /
Telco20.net

44. The mission: get the vortex to
spin. Connect upstream and
downstream opportunities.

45. Upstream Revenue
Opportunities: Some Examples
• High-Definition Content (Classical, Jazz, Concerts...)
• Concert downloads (after attendance, or without)
• Virtual concerts, events, clubs
• Virtual goods (e.g. wallpaper, icons, greetings etc)
• Fan packages (direct connection to artists, pre-
releases, customized editions, special privileges etc)
• Special products 2.0: compilations, audio-video
packages (see SoundWalk), mobile applications etc
• Next-generation physical products (e.g. 2 TB
interactive & connected DVD+)
• Custom-made, on-demand merchandising (see Nike+)
• Many more that are yet to be invented...

46. Selling copies is only the tip of the iceberg
Sell downloads,
CDs... Copies
Your
task: to
define and
exploit
what’s
below!

47. The Internet

48. Please: forget most of what you know about Advertising

49. About Advertising and $ for Music
Yes, it has been disappointing up to now
Advertisers are usually 5 years behind
Global spend on Ads: ~ 700 Billion USD
Every large audience can be monetized
Mobile, video and social media ad
budgets will dramatically increase in the
next 18 months
It may take longer than anticipated - but
will end up much larger than we thought!

50. Yes, there are serious $$ in Advertising

51. • ~ $ 900 Billion USD Global
Advertising Spend in 2012
• 30-50% shifting to digital
media / interactive / mobile
• Opt-in, personalized, targeted
Advertising = Content
• Ads have always paid for Content

52. Virtual Items: a huge opportunity for Music!

53. Where
are the
new
markets?

54. Do get into Branding you have to be a ... Brand!

55. Rivers of Content - big Opportunities in:

56. The New Generatives
Content Sales
Selling Context
Selling Curation
Selling Timeliness 5%
Embodiment / Packaging 15% 20%
Selling Relevance
Others
15%
15%
10% 20%

57. Action Spots (Summary)
• Mobile (Applications!)
• Advertising / Revenue Sharing (e.g. Social
Networks, Search, Portals & Communities)
• Flat Rates & Blankets (fka Broadcasting, now:
Telecoms, ISPs and mobile operators)
• Synchronization (TV, ads, movies, games)
• Branding & Sponsorships
• Virtual Items
• New Music Products (RBT etc)
• Up-selling from ‘free’ (High Definition, AR etc)
• Customization & Personalization
• Virtual concerts & events

58. As Steve Jobs says:
Stay Hungry.
Stay
Foolish.

59. Thanks for your time!
email me at gerd@mediafuturist.com
twitter.com/gleonhard
Facebook: gleonhard
more presentations at
www.mediafuturist.com